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SIP calculator
Estimate what a fixed monthly investment in a mutual fund could be worth, and how much of that is your money versus growth.
How the SIP calculation works
A systematic investment plan (SIP) puts a fixed amount into a fund every month. Each instalment compounds for a different length of time, so the future value is the sum of a series:
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
P is the monthly amount, i is the monthly rate (annual rate ÷ 12) and n is the number of months. At ₹10,000 a month for 10 years and 12% a year, you invest ₹12,00,000 and the formula gives about ₹23,23,391. With a step-up, the instalment rises by your chosen percentage each year, which is how most people’s SIPs behave as income grows.
Reading the result
The return you enter is an assumption, not a promise. Equity funds do not grow in a straight line; the same average can hide years of sharp falls. Use a conservative rate for goals you cannot miss, and check the figure in today’s money with the inflation calculator. If you have a target in mind, the goal SIP calculator works backwards to the monthly amount.
Questions
How are SIP gains taxed?
For equity-oriented funds, gains on units held over 12 months are long-term and taxed at 12.5% above ₹1.25 lakh of such gains in a year; shorter holdings are taxed at 20%. Each instalment has its own holding period. Debt fund gains are generally taxed at your slab rate.
Is a step-up worth it?
Usually yes. Raising a ₹10,000 SIP by 10% a year roughly doubles the final corpus over 20 years compared with keeping it flat, because the larger instalments arrive while there is still time to compound.
Can I stop or pause a SIP?
Yes. SIPs in open-ended funds can be paused or cancelled without penalty, though ELSS units stay locked for three years from each instalment date.